KUALA LUMPUR: The manager of Axis Real Estate Investment Trust (Axis REIT) has acquired a piece of 20.75 acres industrial property in Shah Alam, Selangor for RM120mil cash.
This includes a steel factory and a warehouse with total lettable area of 326,231 square feet. The property was acquired FIW Steel Sdn Bhd, a maker of zinc-coated steel sheets and pre-painted galvanised iron sheets and coils.
FIW Steel will be the sole tenant with a tenancy for one year with an option to renew for another four terms of three months each, Axis REIT said in a statement today.
"The monthly rental for the first year will be RM416,666.67 and RM608,333.34 for the renewed terms," it said.
Axis Reit CEO and executive director Leong Kit May (pic) said the current lettable area represents 36% over of the total property.
"We are in the view that the property has a good redevelopment potential for a warehouse," she said.
Leong added the proposed redevelopment will only be considered post completion of the sale and purchase agreement and after the expiry of the tenancy with FIW.